CertifID raises $20 million to fight online fraud - find out how!

CertifID raises $20 million to develop its real estate fraud prevention technology

CertifID, a start-up developing fraud prevention technology for the real estate market, announced today that it has raised $20 million in a funding round led by Arthur Ventures, at a valuation "more than twice" its previous one.

A response to real estate fraud

CertifID's core business is developing products to combat wire transfer fraud. Thomas Cronkright, co-founder of the start-up, launched the company in 2017 after losing $180,000 to fraud at his real estate agency in Grand Rapids, Michigan.

How does bank transfer fraud work?

In cases of wire transfer fraud involving real estate transactions, criminals obtain information about upcoming real estate closings by hacking into e-mail accounts, often those of prospective homeowners. Posing as legitimate representatives of financial institutions, they send false transfer instructions to home buyers.

An increase in real estate fraud

More than 13,000 people were victims of wire transfer fraud in the real estate and rental sector in 2020, with losses exceeding $213 million, an increase of 380 % since 2017, according to FBI data.

Protecting real estate buyers and sellers

To protect buyers, sellers and real estate companies from this type of cybercrime, Cronkright has teamed up with Tyler Adams, former senior product management manager in BCG's investment and incubation division, to develop a platform.

A platform to combat fraud

CertifID offers tools to combat wire transfer fraud. For real estate agents and real estate law firms, CertifID manages transactions and insures up to $1 million every time money changes hands. Buyers receive transfer instructions and have the option of purchasing insurance for additional protection. As for sellers, they must provide banking information and undergo an identity verification process to avoid fraud attempts.

A rules-based engine with AI

CertifID's rules-based AI engine powers the payment and identity verification processes. The AI is trained on verified internal data and expert decisions, as well as reviews of its own decisions. This model evaluates various fraud indicators and integrates new data points as malicious actors adopt new approaches.

A human-centered approach

Adams says CertifID recognizes the potential of automation and AI in the market, but also that fraud and breaches of trust disproportionately exploit the human factors of technology. That's why CertifID tackles fraud with a human-centric approach.

20 million in funding to support development

With this new funding, CertifID plans to support the ongoing development of its products and expand its business to meet demand. The company claims to have "several hundred" real estate customers and partnerships with federal law enforcement agencies to support fraud recovery efforts.

Over $40 million in fundraising

To date, CertifID has raised over $40 million in equity and debt.

Continued growth despite the economic climate

Despite the crisis in the real estate market, CertifID continues to see growing demand for its products and services. Fraud has continued to rise during the pandemic, the banking crisis and the constant threats of inflation and recession. With the majority of the real estate industry yet to adopt anti-fraud technologies, the company anticipates continued growth in the future.